Nonstop borrowing from IMF poses economic challenges

LAHORE - The Federation of Pakistan Chambers of Commerce and Industry’s Business­men Panel (BMP) chairman has warned that continued borrowing from the IMF and other multilateral sources is posing serious economic threat, as Pakistan has taken foreign loans of $9.43 billion in just first half of this fiscal year, sug­gesting the economic team to convince the lender for softening its conditions so that government could pursue its pro-growth strategies through some incentives for the industry.

BMP Chairman Mian Anjum Nisar emphasized the need for exploring in­vestment resources from the private sector as well as non-traditional re­gional partners through investment friendly policies in the country.

He said that the government is tak­ing foreign loans to build the coun­try’s foreign exchange reserves, which are declining due to repayment of previous loans and financing of cur­rent account deficit. The State Bank’s held foreign exchange reserves have declined by slightly above $3 billion since August 2021. In just one week time, reserves have declined by $562 million mainly on account of interna­tional debt servicing. Reserves held by the SBP have decreased to $17 bil­lion, which would further come under pressure in the next six months as Pakistan has to repay $8.7 billion in the second half of FY 2022.

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